Middle East

China’s Didi plans to “list by referral” to Hong Kong

China’s ride-hailing service giant Diddy Global plans to use a mechanism to list Hong Kong shares without raising funds or issuing new shares when delisting from New York. Two people with knowledge of the matter said.
The plan comes from Diddy’s move towards withdrawal from the New York Stock Exchange under pressure from Beijing. A review of that data practice was carried out.
People said the Hong Kong mechanism, known as “listing by referral,” would allow owners of US Didi stocks to gradually transfer them to the city’s stock exchange.
They refused to be identified because the plan had not yet been announced.
Diddy said he was applying for a listing in Hong Kong by the end of April and is aiming to be listed by June, one said.
The plan is being prepared six months after Didi, sometimes known as Uber Technologies Inc in China, made its debut in New York after raising $ 4.4 billion in a traditional IPO.
Earlier this month, it said it plans to delist from the US Stock Exchange and pursue a listing in Hong Kong. Diddy’s spokesman, who offers apps that offer products such as delivery and financial services in addition to ride hailing, didn’t immediately respond to Reuters’ request for comment.
Unlike regular IPOs, companies listed on the stock exchange in Hong Kong do not raise capital and issue new shares.
This mechanism was popular among companies seeking to build brands in Hong Kong and other Greater China regions.
People said Diddy chose Goldman Sachs, China Merchants Bank International (CMBI) and China Construction Bank International (CCBI) to manage the Hong Kong listing process.
Goldman declined to comment, but CMBI and CCBI did not immediately respond to the request for comment.
Reuters reported this month that Diddy had planned to hire Goldman to delist Hong Kong before delisting in New York.
He asked banks to make suggestions on how delisting in Hong Kong and New York would work.

http://www.gulf-times.com/story/707102/China-s-Didi-plans-Hong-Kong-listing-by-introducti China’s Didi plans to “list by referral” to Hong Kong

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